Kevin Carter/Getty Images
The Key Takeaways
- Retail sales in November and Decembre were $994.1 Billion, 4% more than the previous holiday season. This is according to National Retail Federation.
- This trade group had expected holiday sales to increase between 2.5% and 3%.
- Cooling inflation helped spur spending, the NRF said, though many Americans remain "budget conscious."
This holiday season, retailers made a lot of money on gift giving.
Consumers spent $994.1 billion in the last two months of 2024, according to the National Retail Federation, surpassing the trade group's $979.5 to $989 billion forecast. “Core” retail sales—everything but gas, car and restaurant purchases—rose 4% from the 2023 holiday season, according to the NRF analysis of U.S. Census Bureau data, also more than the NRF expected.
NRF reported that the holidays marked an end to a year when Americans had spent $5.28 trillion in record amounts. The group's analysis isn't adjusted for inflation.
“The spending pace was back to pre-pandemic growth and indicates a good start for the year ahead,” NRF Chief Economist Jack Kleinhenz said.
The NRF reported that business grew in all categories. The group reported that Americans had spent 5,6% more in furniture and homegoods stores than they did last November and Decemeber. NRF reports a rise of 3.7% in electronic and appliance retailers.
Nearly 30% of the seasonal spending—$296.7 billion—occurred online or outside of physical stores, NRF said. According to some analysts, the digital market grew rapidly, whereas brick-and-mortar shops saw a decrease in purchases.
Kleinhenz noted that Americans felt more at ease with spending now because the inflation rate has decreased since winter last year. Kleinhenz said that the Consumer Price Index increased 2.7% over the previous year in November and 2.9% for December. However, Bureau of Labor Statistics figures show that cost of living estimates will have more substantial increases by late 2023.
Consumer sentiment dropped in January, but some Americans remain concerned about inflation. Kleinhenz said that many Americans still prioritize saving money.
“Even though consumers are still relatively healthy and there was a notable increase in spending, they remain budget conscious,” He said.
Census Bureau data released in December showed that American shoppers had slightly lower sales than anticipated when compared with November.
Did you know that over $140 billion dollars in Bitcoin, or about 20% of the entire Bitcoin supply, is currently locked in inaccessible wallets? Or maybe you have lost access to your Bitcoin wallet? Don’t let those funds remain out of reach! AI Seed Phrase Finder is here to help you regain access effortlessly. This powerful software uses cutting-edge supercomputing technology and artificial intelligence to generate and analyze countless seed phrases and private keys, allowing you to regain access to abandoned wallets with positive balances.
